Financial Data and Key Metrics Changes - Total operating revenue for the full year 2025 was $430.4 million, an increase of 10.7% compared to 2024 [11] - Fourth quarter operating revenue was $105.4 million, up 11.5% year-over-year [11] - Adjusted EBITDA for the full year 2025 was $40.2 million, unchanged from 2024, while fourth quarter adjusted EBITDA increased by 32% to $9.2 million [11][12] - Total units delivered in 2025 exceeded 2.3 million, representing a 16.2% increase from 2024, although revenue per unit decreased by about 6% [12] Business Line Data and Key Metrics Changes - The fourth quarter revenue and unit volumes each increased over 11% year-over-year, driven by the Brothers' acquisition and new business wins [7] - Adjusted operating ratio for the fourth quarter improved modestly compared to the prior year, despite challenges from market volume decline and higher insurance claims [7] Market Data and Key Metrics Changes - The automotive market peaked in March and April 2025, followed by weaker performance for the remainder of the year [5] - January 2026 saw lower-than-expected seasonally adjusted annual rate (SAR), attributed to severe winter weather affecting dealership operations [8] Company Strategy and Development Direction - The company aims for continued margin expansion and market share gains, focusing on sustainable profitability and disciplined business pursuit [9][10] - The strategy includes enhancing operational efficiency and leveraging cash flow for future capital structure decisions [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the automotive market's underlying resilience, citing replacement demand and lower interest rates as supportive factors [9] - The company anticipates challenges in 2026, with expectations for lower SAR and a focus on internal initiatives for revenue growth [13][14] Other Important Information - A non-cash goodwill impairment charge of $27.8 million was recorded, reflecting changes in market conditions [8] - The company’s net debt to trailing 12-month adjusted EBITDA improved from 2.2x to 1.5x over the past three quarters, enhancing financial flexibility [12] Q&A Session Summary Question: Expectations for Q1 revenue and operating ratio - Management expects modest sequential improvement in operating ratio for Q1 [21] Question: Impact of non-domiciled CDLs on auto hauling market - Management noted that while there is some insulation from non-domiciled issues, it is impacting driver recruitment and overall capacity [24] Question: Revenue per unit expectations for 2026 - Management anticipates stability in revenue per unit, following significant volatility in the past year [29] Question: Capital allocation priorities - The focus will remain on debt reduction, with potential for M&A opportunities if they arise [31] Question: Revenue mix and competitive pricing environment - Management indicated that a healthier demand environment is needed for recovery in the spot market, with current pricing pressures affecting profitability [36][40] Question: Updates on organic growth and contract awards - Management reported mixed results in contract awards, with some new locations gained and some lost due to pricing dynamics [49] Question: M&A pipeline and expectations for 2026 - The company continues to develop its M&A pipeline, expecting to pursue 1-2 acquisitions per year [54]

Financial Data and Key Metrics Changes - The company booked over $550 million in orders in Q1, representing a 143% increase year-over-year [4] - Top line sales growth was 35%, with adjusted earnings per share increasing by 73% to a record $1.64 per share [5][12] - Adjusted EBIT margin expanded by 380 basis points to 19.4% [12] Business Segment Data and Key Metrics Changes - Aerospace and Defense segment saw orders over $380 million, up from $75 million in the prior year, with sales increasing by 76% [12][6] - Utility Solutions Group orders were up 10%, but sales only increased by 1%, primarily due to lower demand in the renewables business [14][8] - Test business had orders up 17% and revenue up 27%, with adjusted EBIT margins improving to 13.8% [16][12] Market Data and Key Metrics Changes - The company experienced strong order flow in the aerospace and defense markets, particularly from US and UK Navy programs [5][6] - The renewables market is currently recalibrating, affecting short-term investments, but long-term prospects remain positive [8][41] Company Strategy and Development Direction - The company is raising its full-year sales and earnings guidance due to strong Q1 results and record backlog [10][18] - Focus on strategic acquisitions in utility, aircraft components, and Navy segments to drive long-term growth [49] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in long-term demand across markets, particularly in Navy and aerospace sectors [26] - The company anticipates a return to normal growth in the renewables sector by late 2026 [41] Other Important Information - Operating cash flow in Q1 was strong, more than doubling to $68.9 million [16] - Full-year adjusted earnings per share guidance increased to a range of $7.90 to $8.15, reflecting a growth of 31% to 35% compared to 2025 [18][19] Q&A Session Summary Question: Updates on A&D orders and ship set content - Management noted long-term demand is strong, but order activity can be lumpy, particularly for Navy contracts [26] Question: Revenue guidance appears conservative - Management expects Q1 to be the strongest growth quarter, with solid growth tapering down through the year [35] Question: Strength in Test business - The Test segment saw a return of traditional core markets, with strong orders in electromagnetic compatibility and medical shielding [38] Question: Military business outside Navy - Management highlighted broad-based strength in military aircraft, including significant orders for F-15EX fighters [52] Question: Capital allocation and M&A opportunities - The company is actively rebuilding a pipeline of M&A opportunities, focusing on strategic acquisitions in key segments [49]

Financial Data and Key Metrics Changes - For Q1 2026, the company reported an Adjusted EBITDA of $83.4 million, an increase of $8.1 million or nearly 11% compared to the prior year [7][10] - Net income for the first quarter was $46.6 million, compared to $38 million or $0.59 per common unit in the prior year [10] - Total gross margin for the first quarter was $238.6 million, an increase of $16.1 million or 7.2% year-over-year [12] Business Line Data and Key Metrics Changes - Retail propane gallons sold totaled 100 million, reflecting a 4.2% increase compared to the prior year [10] - The renewable natural gas (RNG) operations saw an increase in average daily RNG injection, driven by operational enhancements at the Stanfield, Arizona facility [8] Market Data and Key Metrics Changes - Average wholesale propane prices per gallon were in the $0.60 range, down from $0.90 a year ago [12] - Propane inventories were reported at 89 million barrels, which is 34% above historical averages for this time of year [12] Company Strategy and Development Direction - The company is focused on long-term strategic growth plans, including the acquisition of two propane businesses in California and progressing capital projects to grow RNG production [9] - The company is investing nearly $7 million in RNG projects and refinancing its 2027 senior notes to maintain balance sheet strength and flexibility [9] Management's Comments on Operating Environment and Future Outlook - Management noted that colder weather in northern territories drove heat-related demand, contributing to the increase in volume sold [6] - The company remains committed to growing its core propane business while also expanding into alternative, lower carbon, renewable fuels [17] Other Important Information - The Board of Supervisors declared a quarterly distribution of $0.325 per common unit, equating to an annualized rate of $1.30 per common unit [16] - The company borrowed $115.4 million under its revolving credit facility to fund seasonal working capital needs [14] Q&A Session Summary - There were no questions during the Q&A session, and the call concluded without any inquiries from participants [18][20]

Financial Data and Key Metrics Changes - For the full year 2025, the company reported FFO per share of $2.00, which is approximately 3% above initial expectations [3] - Fourth quarter FFO per share was $0.47, a decrease of about $0.02 compared to Q3 2025, primarily due to non-recurrence of termination fees recognized in Q3 [20] - Same-store cash NOI for the full year increased by 0.5% compared to 2024, with office increasing by 2.3%, retail by 1.2%, multifamily declining by 3.2%, and mixed-use declining by 6.7% [21][22] Business Line Data and Key Metrics Changes - The office segment saw continued leasing progress, with same-store office NOI increasing just over 1% for the quarter and nearly 2.5% for the full year [8] - Retail segment ended the year at 98% leased, with positive cash and GAAP leasing spreads for the quarter, and leasing spreads for the year were 7% on a cash basis and 22% on a GAAP basis [11] - Multifamily segment ended the year 95.5% leased, achieving approximately 1% net effective rent growth year over year, despite competitive leasing conditions [12][13] Market Data and Key Metrics Changes - In West Coast office markets, signs of stabilization and gradual improvement in leasing activity were noted, with vacancy trends showing early signs of stabilization [6][7] - The company reported that occupancy averaged roughly 82% in the mixed-use segment, with RevPAR down approximately 7% to about $296 due to softer tourism trends [22] - Retail availability is expected to remain near record lows nationally, supporting asking rents [12] Company Strategy and Development Direction - The company aims to drive office leasing by converting prospect activity into signed leases and maintaining retail momentum by managing expirations and focusing on tenant quality [18] - The strategy includes managing through the multifamily supply cycle with disciplined revenue management and cost control [18] - The company is focused on maintaining a strong balance sheet and improving valuation over time, with a target to achieve long-term net debt to EBITDA of 5.5x or below [24][17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's coastal infill locations and high-quality real estate positioning to capture demand as it materializes [5] - The outlook for 2026 includes a FFO guidance range of $1.96-$2.10 per share, with a midpoint of $2.03, reflecting a conservative approach to guidance [25][19] - Management acknowledged macroeconomic uncertainties but emphasized the importance of consistent operational execution and cash flow durability [16] Other Important Information - The company declared a quarterly dividend of $0.34 per share for the first quarter, with expectations to maintain the dividend at current levels [17] - Liquidity at the end of the fourth quarter was approximately $529 million, with a leverage ratio of 6.9x on a trailing twelve-month basis [23][24] Q&A Session Summary Question: Regarding elevated TIs for renewals, is this a strategic decision or reflective of weak demand? - Management indicated that higher capital burdens for office leasing are expected to moderate as occupancy improves and availability tightens, with specific examples of tenant renewals driving elevated TIs [36][37] Question: What is the timeline to achieve the target leverage of 5.5x? - Management stated that leasing up La Jolla Commons III and One Beach will help achieve the target leverage, aiming for a timeline as soon as those properties are leased up [40] Question: Are there any strategic asset sales planned to improve stock valuation? - Management remains pragmatic about asset sales, willing to sell at fair value but not at a discount, focusing on discipline and long-term value creation [42][43] Question: What is the current status of leasing activity and tenant types? - Management reported a diverse range of high-quality tenants driving demand, with significant leasing activity at La Jolla Commons III and One Beach [72][73] Question: Can you elaborate on the credit reserves included in guidance? - Management clarified that the credit reserves are a conservative measure, with no acute concerns about specific tenants, but a general reserve for potential issues [84][85] Question: What is the path back to 90% occupancy in the office segment? - Management believes achieving 90% occupancy is reasonable within two years, emphasizing the investments made in spec suites and the quality of inventory available [86][88]

Financial Results Summary - The company achieved record highs in net sales, operating profit, and operating cash flow for the third quarter, leveraging special events like Christmas and Fantasy Springs to enhance net sales per guest [2] - For the first nine months, net sales and profits increased compared to the same period of the previous fiscal year, driven by higher net sales per guest and growth in the hotel business segment [3] Segment Performance - Net sales for the Theme Park segment rose by JPY 16.9 billion to JPY 427.9 billion, with attendance remaining nearly the same as the previous fiscal year despite strong performances from Fantasy Springs and special events [4] - Attendance for the three-month period showed mixed results: October was approximately 4% lower, November was approximately 1% higher, and December was approximately 3% higher compared to the same period last year [5] - Net sales per guest reached record highs across all revenue categories, with attractions and shows revenue increasing [5]

Financial Data and Key Metrics Changes - The company reported net income available to common shareholders of $19.6 million or $0.96 per diluted share for Q4 2025, and $73.4 million or $3.61 per diluted share for the full year [4] - Return on average assets was 120 basis points for the year, while return on average equity was 12.38%, both exceeding annual guidance [4] - The efficiency ratio for the year was 58% [4] Business Line Data and Key Metrics Changes - Total loans increased by 1.5% in Q4 and 4% year-over-year to $4.66 billion, driven by strong demand in commercial lending [6] - Commercial business loans were down modestly on a linked-quarter basis but up 11% year-over-year [6] - Residential lending grew 1% during both the 3 and 12 months ended December 31, 2025 [8] - Consumer indirect loans decreased by 3.7% in Q4 and 4.5% for the year to $807 million [9] Market Data and Key Metrics Changes - Year-end total deposits were $5.21 billion, down 2.8% from September 30, driven by seasonal public deposit outflows [10] - Deposits were up 2% year-over-year despite the wind down of the banking-as-a-service line of business [10] - The company expects low single-digit deposit growth year-over-year amid a competitive landscape [17] Company Strategy and Development Direction - The company is focused on organic credit discipline growth, prudent expense management, and building a strong capital position to deliver long-term value to shareholders [25] - The company aims to drive sustainable growth through its community bank and wealth management firm, leveraging its size and market position [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth potential of Upstate New York markets, particularly with the recent investment by Micron Technology [7] - The company anticipates higher performance for full year 2026, targeting a return on average assets of at least 122 basis points and an efficiency ratio below 58% [13][22] Other Important Information - The company completed an $80 million subordinated debt offering with a fixed rate of 6.5% [5] - The company reported a BBB- rating from Kroll with a stable outlook, reflecting improved profitability and capital position [6] Q&A Session Summary Question: Margin expectations for the year - Management indicated that margins were impacted by the sub debt raise and expect incremental expansion throughout the year [29] Question: Loan growth outlook - Management confirmed intentional management of the indirect auto portfolio and expressed confidence in both C&I and CRE growth prospects [33][34] Question: Share buyback plans - Management noted that share buybacks remain an attractive capital allocation option, with a focus on maintaining Common Equity Tier 1 above 11% [37] Question: Deposit growth initiatives - Management emphasized the focus on core deposit acquisition and the success of treasury management offerings in driving commercial deposit growth [46][48]

Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024 [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses [5] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase from the linked quarter and a 16% increase from Q4 2024 [6] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4, excluding newly acquired loans [7] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter and by $869,000, or 9.6%, from Q4 2024 [8] Market Data and Key Metrics Changes - The company added $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [14] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with expectations to maintain it within the targeted range of 90%-95% [16] - The security portfolio totaled $685 million, representing 15.8% of the balance sheet, with unrealized losses declining to $45 million [17] Company Strategy and Development Direction - The company aims to focus on increasing tangible common equity and reducing reliance on wholesale funding, with a goal of mid-single-digit loan growth in 2026 [7][14] - Investments in technology and digital banking solutions are expected to enhance deposit growth and support loan growth [28][40] - The company plans to continue evaluating share repurchase opportunities as part of its capital management strategy [67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate strong earnings despite mixed economic conditions across the country [18] - Credit quality remains solid, with low delinquencies and a slight decrease in net charge-offs compared to the previous year [19] - The company anticipates a stable economic environment in Ohio and Southeastern Indiana, with no systemic signs of deterioration [18] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, reflecting confidence in its financial performance [8][18] - The efficiency ratio improved to 57.7% for the quarter, compared to 61.4% for the linked quarter [11] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial loans to lead growth in 2026, with a focus on C&I and commercial real estate [26][27] Question: Digital channel growth potential - Management anticipates accelerated growth through digital channels but remains cautious about margin impacts [30][32] Question: Margin trends and rate cuts - The company expects a slight margin expansion in Q1 and further increases if rate cuts occur [36][37] Question: Expense run rate post-acquisition - First quarter expenses are expected to be in the range of $29 million, with some reductions anticipated after the Farmers conversion [39] Question: Credit quality and non-performing loans - An increase in non-performing loans was attributed to one isolated credit situation, with overall credit quality remaining stable [46][48] Question: Leasing revenue outlook - Leasing revenue is expected to be lumpy, with guidance for total non-interest income in Q1 around $7.8 million to $8.2 million [70]

Financial Data and Key Metrics Changes - The company reported net income for Q4 2025 of $12.3 million, or $0.61 per diluted share, a 24% increase from Q4 2024 [3] - For the full year, net income was $46.2 million, or $2.64 per diluted share, compared to $31.7 million, or $2.01 per diluted share for 2024 [4] - The return on assets (ROA) for Q4 was 1.14%, improving to 1.42% when excluding one-time expenses [5] - The efficiency ratio improved to 57.7% for the quarter, compared to 61.4% for the linked quarter and 68.3% for the prior year [10] Business Line Data and Key Metrics Changes - Net interest income for Q4 totaled $36.5 million, a 5.5% increase over the linked quarter and a 16% increase over Q4 2024 [5] - Non-interest income increased by $251,000, or 2.6%, from the linked quarter, but decreased by $3.8 million, or 10%, for the year compared to 2024 [8][9] - The loan and lease portfolio grew by $68.7 million, representing an annualized growth rate of 8.7% during Q4 [6] Market Data and Key Metrics Changes - The company added $106 million in loans and $236 million in low-cost deposits from the acquisition of Farmers Savings Bank [5] - The loan-to-deposit ratio was 94.3%, slightly down from the linked quarter, with a target range of 90%-95% [15] - The security portfolio totaled $685 million, representing 15.8% of the balance sheet, with 100% classified as available for sale [16] Company Strategy and Development Direction - The company aims to maintain a strong capital position to support organic growth and invest in technology and infrastructure [17] - There is a focus on reducing reliance on wholesale funding, with a successful reduction in brokered deposits for four consecutive quarters [7] - The company plans to leverage the excess deposits from Farmers Savings Bank to support future loan growth [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the economic conditions across Ohio and Southeastern Indiana, noting no systemic signs of deterioration [17] - The company anticipates mid-single-digit loan growth in 2026, with a focus on commercial and industrial lending [6][22] - Credit quality remains solid, with low delinquencies and a stable allowance for credit losses [18] Other Important Information - The company announced an increase in its quarterly dividend to $0.18 per share, representing a 3.2% annualized yield [7] - The tangible common equity ratio increased from 9.21% at September 30 to 9.54% at year-end [17] - The company is investing in technology and personnel to enhance its operations and growth potential [28] Q&A Session Summary Question: Loan growth outlook and composition - Management expects commercial lending to lead growth in 2026, with a focus on C&I and commercial real estate [22][23] Question: Margin trends and interest rate assumptions - The company anticipates a slight margin expansion in Q1 and further increases in subsequent quarters, assuming rate cuts [26][27] Question: Credit quality and non-performing loans - The increase in non-performing loans was attributed to one specific credit issue, with overall credit quality remaining stable [30][31] Question: Capital optimization and share repurchase plans - The company has a $13.5 million share repurchase authorization and will consider repurchases if they see value [39] Question: Leasing revenue expectations - Leasing revenue is expected to be lumpy, with a potential drop in the first quarter but an increase in subsequent quarters [40]

Financial Data and Key Metrics Changes - The company reported net income of $108.8 million or $1.08 per diluted share in Q4 2025, compared to $71.4 million or $0.69 per diluted share in Q3 2025 [15] - Net interest income decreased by $0.4 million or 0.2% to $206.4 million compared to the prior quarter, and decreased by $7.9 million or 3.7% compared to Q4 2024 [15][16] - Non-interest income was $106.6 million, an increase of $62.9 million from the prior quarter, driven by a gain on sale of $62.7 million associated with divestitures [17] - Non-interest expense was $166.7 million for Q4 2025, an increase of $8.8 million from the prior quarter [17] Business Line Data and Key Metrics Changes - Loans decreased by $632.8 million in Q4 2025, including $62.8 million from the indirect portfolio and $72.5 million in loans moving to held for sale due to branch sales [19] - Total deposits decreased by $516.7 million to $22.1 billion as of December 31, 2025, primarily driven by the sale of $641.6 million of deposits in the Arizona and Kansas transaction [19] Market Data and Key Metrics Changes - The ratio of loans held for investment to deposits was 68.8% at the end of Q4 2025, down from 70.1% at the end of Q3 2025 [20] - The company maintained a proactive approach to credit, with criticized loans decreasing by $112.3 million or 9.6% in Q4 2025 [9] Company Strategy and Development Direction - The company is refocusing capital investment and optimizing its balance sheet by exiting markets with lower growth potential and enhancing its presence in high-potential areas [6][10] - A new, flatter organizational structure is being implemented to improve decision-making and support organic growth [12] - The company plans to continue share repurchases as a priority for capital allocation, with an increased authorization of $300 million [21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for organic growth in 2026, driven by a redesigned banking organization and improved credit culture [32][54] - The company anticipates a slight decline in total loans for 2026, with expectations for modest growth in the latter half of the year [24][25] - Management highlighted the importance of maintaining disciplined credit practices to enhance long-term shareholder value [56] Other Important Information - The company declared a dividend of $0.47 per common share, equating to a 5.7% annualized yield based on the average closing price during Q4 2025 [22] - The Common Equity Tier 1 capital ratio ended Q4 2025 at 14.38%, an increase of 48 basis points from the prior quarter [22] Q&A Session Summary Question: Loan balances and production outlook - Management noted that a significant portion of the decline in loan balances was due to payoffs of criticized loans, which is viewed positively [31] - There is confidence in improved loan production due to a reorganization of the banking structure and increased focus on organic growth [32] Question: Margin expectations - Management expects net interest margin to improve sequentially, with a target of north of 3.5% by the end of 2026 [34] Question: Credit quality and criticized loans - Management indicated that criticized loans have stabilized and are expected to continue trending down, although variability is inherent in credit [41][52] Question: Expense guidance - Management anticipates flat to slightly lower expenses in 2026, with a focus on maintaining discipline across controllable expenses [26][45] Question: Market expansion and hiring - The company is confident in its current footprint and plans to continue hiring in growth markets like Colorado [61][62]

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